March 11, 2009

Why Neither Bush nor Obama Killed the Economy

by Pam Baker, veteran journalist and business consultant

All the political pontificating, politician posturing and anything- but- unbiased media sideshows are distracting us from the one single, simple truth we should be addressing: businesses failed. They simply and undeniably failed.

You can demonize Bush and fawn over Obama; or, fawn over Bush and demonize Obama – it really doesn’t matter, because whether a company is profitable or not is more a matter of management than public policy.

So get over yourself and your politician or party of choice already. Politics and policy are no excuse for business failure. Yes, Bush threw out all the rules; some say the Clinton administration had a hand in that as well. To which I say, so what? You mean to tell me that Fortune 500 companies failed because the teacher was out of the room?

If that’s the case, then the onus is on boards, stockholders and stakeholders for putting unruly children at the helm in the first place. And, they deserve the bruising they are taking now if they stubbornly and foolishly keep those children in place.

Had these companies held to solid business principles, ethics and best practices, they would have prospered no matter who sat in the White House. That, my friends, is the bottom line.

Since so many business leaders lack basic business acumen, self-discipline and solid ethics, government will institute regulations again and rightfully so. Trash the room and bully other kids, and the teacher inevitably comes back into the room.

You want to stop the red ink bleeding and bring business back in the black? Then simply return to tried and true business principles. Here’s a starter list to get your business moving in the right direction:

3)Don’t invest in -- or with -- friends; invest based solely on facts and pragmatism. Be diligent; there is a Bernie Madoff on every corner.

4)Do your homework before proceeding in any direction.

5)Build a business case before making any major decision.

6)Remember the customer is always right.

7)Put all costs and profits on the books.

8)Never “play with the numbers.”

9)Weed out sandbaggers from your ranks.

10)Remember employees and customers are vital elements in your business plan.

11)Police your own actions before someone else does so that you gain tangible rewards and avoid painful punishments.

12)Don’t bend or break rules just because you can.

13)Remember what you do to others can be done to you.

14)Do away with any sense of entitlement: no, management doesn’t need a million dollar bathroom make-over, for example. Make it clear that bonuses are for exemplary achievement, not for just showing up to work.

Comments

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Pam, I would adopt your set of rules to run any bussiness by: Don't bend or break a rule just because you can stands tall also management doesn't need a million dollar bathroom, gets 5 stars also no bonus if not earned.
Great bussiness rules.
J.G